The government stands behind it, FinMin Lenihan says. Trouble for Lenihan is that the market is concerned that the government does not have the wherewithal if Irish banks take another leg to the downside.
Also on the wires, Italy’s Tremonti says that there is no concern among EU partners on Italian public debt.
EUR/USD is rebounding modestly in early afternoon trade, now at 1.2720, up from 1.2698 session lows.
